The rupee closed at 85.72 on Tuesday. The currency strengthened by 11 paise against the greenback.
The Indian rupee had declined to a fresh low against the US dollar during the day on Tuesday, as demand for the greenback persisted. The Indian unit had declined by four paise to a record low of 85.82 a dollar within one hour of the session.
"Indian rupee which made a fresh closing low of 85.82 on constant dollar demand from FPIs who were sellers of equity. The rupee had risen up to 85.58 in Monday's NDF trade but has not been able to sustain the rally as Trump denied the report that he was going with tariffs only on critical sectors," Anil Kumar Bhansali, head of treasury and executive director of Finrex Treasury Advisors LLP, said earlier.
Dollar Index And Crude Oil
The dollar traded near one-week low versus major peers as traders considered whether Donald Trump's tariffs will be less aggressive than promised, though Trump has promptly denied them as fake news. This brought the dollar back to 108.36 from a low of 107.74 on Monday.
US Dollar Index stood at 107.92 and was 0.30% down. While Brent Crude Oil was at $76.07 and was down 0.23%.
"The dollar index had gone up to 109.58 for the first time since November - 22 on January 2 in response to Trump's promised fiscal stimulus, reduced regulation and higher tariffs to boost growth," according to Bhansali.
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